Metrics
Average Daily Rate (ADR) for Short-Term Rentals — Formula and Benchmarks
ADR is your average nightly revenue per booked night. Learn how to calculate it, benchmark it against your market, and use it to maximize STR income.
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Metrics
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Average Length of Stay (ALOS) for Short-Term Rentals — Formula and Impact
ALOS measures how many nights guests book on average. Learn how it affects your cleaning costs, RevPAR, and overall STR profitability.
- Metrics
Metrics
Expense Ratio for Short-Term Rentals — What It Is and Why It Matters
The expense ratio measures what share of gross revenue goes to operating costs. Learn how to calculate it, what benchmarks to expect by market tier, and how to use it alongside NOI and cap rate to evaluate STR deals.
- Metrics
Metrics
Gross Rent Multiplier (GRM) — What It Is and How to Use It for STR Deals
Gross Rent Multiplier (GRM) is a fast property screening ratio used to compare STR deals. Learn the formula, a worked example, and when to use GRM vs cap rate and cash-on-cash return.
- Metrics
Metrics
Gross Rental Yield for Short-Term Rentals — Formula, Calculator, and Benchmarks
Gross rental yield measures annual rental income as a percentage of property price — before expenses. Learn the formula, how to benchmark it, and why it is different from cap rate.
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What Is IRR (Internal Rate of Return) for Short-Term Rental Investments?
IRR measures the true annualized return of an STR investment including appreciation and resale. Learn how to calculate it and when to use it vs. cash-on-cash return.
- Metrics
Financing
Loan-to-Value (LTV) Ratio: What It Means for Short-Term Rental Financing
LTV measures your mortgage balance as a percentage of your property's value. Learn how lenders use it to approve STR loans, set interest rates, and determine PMI requirements.
- Financing
- Metrics
Metrics
Property Management Fees for Short-Term Rentals: What to Expect
STR property management fees typically range from 15–35% of gross revenue. Learn what's included, how fee structures work, and when self-managing vs. hiring a manager makes financial sense.
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Metrics
Break-Even Occupancy for Short-Term Rentals — How to Calculate It and Why It Matters
Break-even occupancy is the minimum occupancy rate needed to cover all expenses including debt service. Learn how to calculate it, what benchmarks indicate a safe margin of safety, and how to use it to stress-test STR deals before you buy.
- Metrics
Metrics
Net Operating Income (NOI) for Short-Term Rentals — Formula, Benchmarks, and Why It Matters
Net Operating Income (NOI) is the income a short-term rental generates after all operating expenses but before mortgage payments. Learn how to calculate NOI step by step, understand what a healthy NOI margin looks like for STRs, and see why it is the foundation metric behind cap rate, DSCR, and cash-on-cash return.
- Metrics
Metrics
Occupancy Rate for Short-Term Rentals — What It Is and How to Improve It
Occupancy rate is the percentage of available nights your STR is booked. Learn how to calculate it, what benchmarks to target by market type, and how to use it alongside RevPAR and break-even occupancy to evaluate and improve STR performance.
- Metrics
Metrics
RevPAR for Short-Term Rentals — What It Is and How to Use It
RevPAR (Revenue Per Available Room) combines occupancy and nightly rate into a single performance metric. Learn how to calculate RevPAR, what benchmarks to target by market type, and how to use it to compare STR properties and spot underperformers.
- Metrics
Metrics
Debt Service Coverage Ratio (DSCR) for STR Loans — What Lenders Require and How to Calculate It
DSCR (Debt Service Coverage Ratio) is the metric lenders use to determine whether a short-term rental property generates enough income to cover its mortgage payments. Learn how to calculate DSCR, what ratios STR lenders require, and how to improve your property's coverage ratio to qualify for better financing terms.
- Metrics
Metrics
Cash-on-Cash Return
Cash-on-cash return measures annual pre-tax cash flow as a percentage of total cash invested. It's the most practical metric for leveraged STR buyers.
- Metrics
Metrics
What Is Cap Rate?
Cap rate measures a property's income return independent of financing. Learn how to calculate it and what makes a good cap rate for STR investing.
- Metrics
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